Closure of Beverage Partners Worldwide

Effective 01/01/2018, Nestlé and The Coca-Cola Company officially dissolved Beverage Partners Worldwide (BPW), their long-running 50-50 joint venture focused on ready-to-drink (RTD) tea products outside Japan. The move ended a partnership that had operated for more than two decades and managed several international tea brands, including Nestea. BPW was originally established in 2001 through the merger of earlier tea beverage collaborations between the two companies. Headquartered in Zurich, Switzerland, the venture handled the development, production, marketing, and distribution of RTD tea beverages across numerous global markets. Over the years, Nestea became one of the most widely distributed international iced tea brands under the alliance. Nestlé announced the decision during 2017, explaining that both companies intended to pursue separate strategic priorities within the beverage sector. Under the agreement, Nestlé retained ownership of the Nestea brand and continued developing it independently in selected markets. The Coca-Cola Company, meanwhile, strengthened focus on its own tea portfolio, including brands such as Fuze Tea, Honest Tea, and Gold Peak in different regions. The dissolution also reshaped existing licensing and distribution arrangements around the world. In several countries, Coca-Cola bottling partners had previously distributed Nestea products through BPW agreements. Following the split, regional transitions were implemented market by market as contracts expired or were renegotiated. Some territories shifted fully to Coca-Cola-owned tea brands, while others continued carrying Nestea under new arrangements managed directly by Nestlé or local partners. Industry analysts viewed the closure as part of broader restructuring efforts within the global beverage industry, where companies were increasingly focusing on direct brand ownership, healthier beverage categories, and faster innovation cycles. The RTD tea market itself had become more competitive during the 2010s, with growing demand for low-sugar beverages, herbal infusions, organic products, and functional drinks. Nestlé stated at the time that the end of BPW would allow the company to “further develop strategic growth opportunities” for Nestea and other beverage businesses. Coca-Cola similarly described the transition as an opportunity to accelerate innovation within its own global tea portfolio. Editorial Note The dissolution of BPW marked the end of one of the beverage industry’s longest-running international tea partnerships. While Nestea remained active in many markets afterward, the separation reflected how major food and beverage companies were increasingly reorganizing around independently controlled global brands and changing consumer preferences.